The worldwide cybersecurity market grew 15.9 per cent year-on-year in the third quarter of 2022, to $17.8 billion, despite deteriorating economic conditions, according to a report by a market research firm Canalys.
Palo Alto Networks was the number one vendor in the quarter, growing 24.9 per cent year on year and increasing its market share to 8.4 per cent , up from 7.8 per cent in Q3 2021, the report by Canalys Cybersecurity Analysis.
Cisco was the second-largest cybersecurity vendor, with a growth of 16.7 per cent and market share of 6.9 per cent. Fortinet placed third, achieving growth of 29.9 per cent to reach a 6.7 per cent market share, up from 6.0 per cent a year ago.
Endpoint security was the fastest-growing category, up 18.7 per cent year-on-year at $2.7 billion. Network security was the largest category, representing $5.1 billion and growing 14.8 per cent.
The report said, “the technology sector faces deteriorating economic conditions, increasing uncertainty, and greater scrutiny of IT spending, factors that most vendors considered in their forecasts. Falls in new business, reductions in spending commitments, and delays to subscription start dates were worse than expected, which will filter into future results.”
$9.6 billion worth of sales came from North America, which remained by far the largest cybersecurity market, representing 53.8 per cent of global spending. It was also the fastest-growing market at 17.1 per cent. EMEA (Europe, Middle East, Africa) region’s sales reached $5.2 billion, Asia-Pacific $2.4 billion, and Latin America $0.6 billion, according to the report.
“Many cybersecurity vendors have shifted toward subscription-led business models, which also helped to shield them from the immediate impact of the economic slowdown. The move to subscription-based platforms and increased focus on upselling existing accounts will sustain revenue growth for cybersecurity vendors over the next 12 months,” said Matthew Ball, Chief Analyst at Canalys.